A report from the Pembina Institute claims the new Sturgeon County Meta data centre could add hundreds of dollars each year to Albertans’ power bills. Analysis, released by the clean energy think tank on Wednesday, looked at how the new facility coming online could change transmission and energy charges over the next five years. It estimates the Meta project would lower transmission fees by about $13 annually, but that energy costs could increase by $282 to $477 per household per year – depending on how often the Meta facility is operating during peak demand hours. “The main reason why this kind of cost spike exists is because there’s a time lag between when the data centre comes online and when the power plant comes online in order to sort of meet that new supply,” David Pickup, the report’s author, told CTV News Edmonton on Friday. Alberta Premier Danielle Smith has touted her province’s “bring-your-own-generation” (BYOG) approach to data centres as a protective measure against stress on the grid. “The first thing is we want to make sure it doesn’t impact your electricity bills,” Smith said at a virtual data centre town hall on Thursday. “What we said is, if you want to come to Alberta, you’ve got to have a plan to build your own power.” However, the current framework will allow the 1-gigawatt Meta facility to start up years ahead of its BYOG gas plant, which is expected to come online in 2030. Meta signed a long term agreement in July with Capital Power, which will allow it to pull power from the Alberta grid starting as soon as summer or fall 2028. During Alberta Electric System Operator (AESO) stakeholder consultation, multiple organizations raised concerns over possible affordability challenges caused by the early energization of large loads like Meta. EPCOR said letting big energy users start up without their own power source would “almost certainly increase electricity prices.” “The AESO is essentially putting all other customers in the position of paying for the bridging option for large loads that take advantage of it through the BYOG process, through higher electricity prices,” EPCOR wrote. “This is contrary to Government of Alberta messaging that data centres are bringing their own power and will not increase electricity costs for Albertans.” Direct Energy Marketing Limited also raised concerns with the existing framework. “The stated objective of Alberta’s large load framework is to protect existing customers while enabling new investment. However, the AESO has not demonstrated how the proposed limit was assessed from an affordability perspective,” the energy company wrote. “During stakeholder discussions, the AESO indicated affordability was not considered when determining the bridging limit.” Electricity market an ‘ebb and flow’ of prices: AESO In a statement sent to CTV News Edmonton Friday, the AESO said it is not responsible for approving or regulating data centres. Its role, it said, was to ensure safe, reliable connection to the grid. “The AESO is continuing to develop the BYOG process with industry input as part of creating a long-term framework for large load growth. We will be sharing further information with stakeholders this fall,” the statement read. The AESO said, while wholesale prices are expected to increase, retail prices are set by retailers and reflect broader market conditions and a variety of other factors. “Alberta’s electricity market naturally creates an ebb and flow of prices through the fundamental principle of supply and demand; higher demand from new load is expected to raise pool (wholesale) prices, which is anticipated to attract new supply, thereby lowering pool prices,” it continued. “This is how the market balances prices over time and signals when and where supply is needed. Large new electricity loads contribute additional revenues to the transmission system, helping offset transmission costs for existing customers.” Fearmongering In a statement, the ministry of affordability and utilities office accused the Pembina Institute’s report of fearmongering. “Their analysis deliberately ignores our government’s ongoing work to enhance consumer protections, like stabilizing the default rate, which shields Albertans from wholesale market volatility,” the statement said. “Albertans have a myriad of electricity rate options available to them, from competitive contracts to default rates,” it continued. “These options protect consumers from rate volatility by utilizing fixed rates. “Our government has ensured that every Albertan has guaranteed access to a rate which is fixed for two years, and increases are capped by regulation.” Pickup agreed that fixed rates can protect from short-term spikes in energy prices, but added “even those fixed prices over time are going to shift as well.” Pause new applications: Nenshi On Thursday, Alberta NDP leader Naheed Nenshi called on the province to pause new applications for data centre projects until a “robust impact assessment framework” was complete. Nenshi said data centres have been known to increase power bills in some U.S. jurisdictions. Alberta already has among some of the more expensive power in Canada, according to the Canada Energy Regulator, with residential prices trending higher compared to most provinces due to the competitive market. “We pay among the highest electricity costs in the country right now, despite abundant natural gas,” Nenshi said. “The premier has said that the Meta data centre … might reduce the transmission portion of your bill by 6 per cent. “That’s probably true, but the premier has also said that her whole goal in doing this is to increase the price of natural gas, which she finds too low. And if the price of natural gas goes up. That means your electricity bill and the bill you pay to heat your house is also going to go up.” The minister of affordability’s office said the Pembina Institute’s report failed to account for the competitive nature of Alberta’s electricity market, “where increased demand attracts new generation, which lowers power prices.” With files from CTV News Edmonton’s Curtis Goodrum and The Canadian Press
